Correlation Between Rojana Industrial and Neo Corporate
Can any of the company-specific risk be diversified away by investing in both Rojana Industrial and Neo Corporate at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Rojana Industrial and Neo Corporate into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Rojana Industrial Park and Neo Corporate Pcl, you can compare the effects of market volatilities on Rojana Industrial and Neo Corporate and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Rojana Industrial with a short position of Neo Corporate. Check out your portfolio center. Please also check ongoing floating volatility patterns of Rojana Industrial and Neo Corporate.
Diversification Opportunities for Rojana Industrial and Neo Corporate
0.86 | Correlation Coefficient |
Very poor diversification
The 3 months correlation between Rojana and Neo is 0.86. Overlapping area represents the amount of risk that can be diversified away by holding Rojana Industrial Park and Neo Corporate Pcl in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Neo Corporate Pcl and Rojana Industrial is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Rojana Industrial Park are associated (or correlated) with Neo Corporate. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Neo Corporate Pcl has no effect on the direction of Rojana Industrial i.e., Rojana Industrial and Neo Corporate go up and down completely randomly.
Pair Corralation between Rojana Industrial and Neo Corporate
Assuming the 90 days trading horizon Rojana Industrial Park is expected to under-perform the Neo Corporate. But the stock apears to be less risky and, when comparing its historical volatility, Rojana Industrial Park is 51.64 times less risky than Neo Corporate. The stock trades about -0.02 of its potential returns per unit of risk. The Neo Corporate Pcl is currently generating about 0.1 of returns per unit of risk over similar time horizon. If you would invest 3,900 in Neo Corporate Pcl on December 4, 2024 and sell it today you would lose (775.00) from holding Neo Corporate Pcl or give up 19.87% of portfolio value over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Strong |
| Accuracy | 92.86% |
| Values | Daily Returns |
Rojana Industrial Park vs. Neo Corporate Pcl
Performance |
| Timeline |
| Rojana Industrial Park |
| Neo Corporate Pcl |
Rojana Industrial and Neo Corporate Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Rojana Industrial and Neo Corporate
The main advantage of trading using opposite Rojana Industrial and Neo Corporate positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Rojana Industrial position performs unexpectedly, Neo Corporate can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Neo Corporate will offset losses from the drop in Neo Corporate's long position.| Rojana Industrial vs. Thaifoods Group Public | Rojana Industrial vs. Patrangsit Healthcare Group | Rojana Industrial vs. Wattanapat Hospital Trang | Rojana Industrial vs. Chiangmai Frozen Foods |
| Neo Corporate vs. KTBST Mixed Leasehold | Neo Corporate vs. SE Education Public | Neo Corporate vs. Premier Marketing Public | Neo Corporate vs. LH Hotel Leasehold |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Earnings Calls module to check upcoming earnings announcements updated hourly across public exchanges.
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